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SDK to Consolidate Aluminum Sheet Sales in Eastern Japan

June 6, 2005

Showa Denko K.K. (SDK) has decided to consolidate the Group’s commodity aluminum sheet sales in Eastern Japan?Nagoya and eastward?at its fully owned subsidiary Showa Denko Aluminum Trading K.K. (SDAT) as from October 2005.

This follows the consolidation of commodity aluminum sheet sales in Western Japan at SDAT in January 2004, which aimed at eliminating overlaps in sales functions and increasing efficiency.

SDAT, based in Osaka, will open a sales office in Tokyo and assume responsibility for pricing, inventory control and development of new applications in the Eastern Japan market.

Also in October this year, SDAT will take over aluminum sheet processing operation from Showa Denko Sakai Aluminum K.K. (SSK), another Osaka-based fully owned subsidiary of SDK producing aluminum sheet and high-purity aluminum foil for capacitors.

In the aluminum sheet business, SSK will hereafter concentrate on the production of coil through hot/cold rolling of slabs, entrusting the subsequent operations--processing, cutting, packaging and shipping--to SDAT. Meanwhile, SSK will start using JIS 5000 series aluminum alloy in addition to the current JIS 1000 and 3000 series aluminum alloys, which are close to pure aluminum.

SDAT is aiming to increase its sales volume of aluminum sheet to 1,500 tons a month, from the current approximately 1,300 tons a month, by expanding its product portfolio.

To strengthen its commodity aluminum business, SDK has taken various steps, including the separation of the rolled products manufacturing into a subsidiary (SSK), consolidation of sales agents in the Kansai region through the establishment of SDAT, and consolidation of extrusions production sites.

[Profile of Showa Denko Aluminum Trading K.K.]

Head office 1-1-1, Nishi Tanabe-machi, Abeno-ku, Osaka
President Masayoshi Yoneyama
Capital ¥249 million (owned 100% by SDK)
Number of employees 89
Annual sales Approx. ¥15.3 billion (for the term ended December 31, 2004)
Sales offices in Osaka, Fukuoka, Tokushima and Okinawa